Page 28 - GTBank Annual Report 2020 eBook

Notes to the Financial Statements.

1. Reporting entity
conformity with IFRS requires the directors to make
Guaranty Trust Bank (Gambia) Limited (“the Bank”) judgments, estimates and assumptions that affect
is a company domiciled in The Gambia. The Bank’s the application of the Bank’s accounting policies
registered address is 56, Kairaba Avenue, Fajara, and the reported amounts of assets, liabilities,
KSMD, The Gambia. These financial statements for income, expenses and the accompanying
st
the year ended 31 December 2020 are prepared disclosures, as well as the disclosure of contingent
for the Bank, which primarily provides commercial liabilities The estimates and associated
banking services to the general public. assumptions are based on historical experience
and various other factors that are believed to be
These financial statements were authorised for reasonable under the circumstances, the results of
which form the basis of making the judgements
issue by the directors on: 2021. about carrying values of assets and liabilities that
are not readily apparent from other sources. Actual
2. Basis of preparation results may differ from these estimates.
The estimates and underlying assumptions are
2.1. Statement of Compliance reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the year in
The financial statements of the bank have been which the estimate is revised and in any future
prepared in accordance with International Financial years affected. Existing circumstances and
Reporting Standards issued by the International assumptions about future developments may
Financial Standards Board and with the relevant change due to circumstances beyond the Bank’s
provisions of the Banking Act 2009 and The control and are reflected in the assumptions if and
Companies Act 2013. when they occur. Items with the most significant
effect on the amounts recognized in the financial
2.2. Basis of measurement statements with substantial management
judgement and/or estimates are collated below with
The financial statements have been prepared under respect to judgements/estimates involved.
the historical cost convention as modified by the
measurement of certain financial assets and
financial liabilities held at fair value with the
exception of the following: 2.4.1. Impairment losses on financial assets

Assets and liabilities measured at amortized The measurement of impairment losses both under
cost; IFRS 9 across all categories of financial assets in
scope requires judgement, in particular, the
Non-derivative financial instruments, carried estimation of the amount and timing of future cash
at fair value through profit or loss, or fair value flows and collateral values when determining
through OCI are measured at fair value impairment losses and the assessment of a
significant increase in credit risk. These estimates
2.3. Functional and presentation currency are driven by a number of factors, changes in which
can result in different levels of allowances.
These financial statements are presented in The Bank’s ECL calculations are outputs of
Dalasi, which is the Bank’s functional complex models with a number of underlying
currency. Except where indicated, financial assumptions regarding the choice of variable inputs
information presented in Dalasi has been and their interdependencies. Elements of the ECL
rounded to the nearest thousand. models that are considered accounting judgements
and estimates include:
2.4. Use of Estimates and Judgements
The preparation of the financial statements in Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 26